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Question - By the time Harsh graduated school he had an OSAP loan of $22,000. The interest charged on the loan is about 4.5% which is compounded monthly. Harsh has decided he had better focus on getting the loan paid off as quickly as possible to save paying a lot of extra money in interest. He set for himself the goal of paying off the loan in three years.
What would Harsh's monthly loan payments have to be in order to achieve his goal?
What will be the total interest paid?
Harsh realizes that payment amount is not manageable based on how much he currently makes and all of the other expenses he also has to budget for. As a result he decides paying off his loan in 6 years is simply more realistic.
What would Harsh's monthly loan payments be with this new time line?
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